To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Grant Agreement #78-105 with Advocates for Human Potential, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute, on behalf of the County, Project Funding Agreement #78-105 with Advocates for Human Potential, Inc., and any related certification documents as required by the grant, to pay County an amount not to exceed $16,584,692 for the development of the Sherman Recovery Center, which will be located on the County-owned property located at 2025 Sherman Road in Pleasant Hill; and AUTHORIZE the Public Works Director, or designee, to execute a regulatory agreement and declaration of restrictions, and any property related transaction documents, as required by the grant, all subject to final approval by the County Administrator and approval as to form by County Counsel.
FISCAL IMPACT:
Approval of this Funding Agreement will result in payment to the County of up to $16,584,692 in funding from the State Department of Health Care Services through their administrator, Advocates for Human Potential, Inc. County match of up to $1,106,423 is required and funded 75% ($835,000) by property equity funds and 25% ($271,423) by Mental Health Services Act (MHSA) funds.
BACKGROUND:
In March of 2024, California voters approved Proposition 1, a two-bill package amending the Mental Health Services Act (Senate Bill 326) and the Behavioral Health Bond Infrastructure Act of 2024 (Assembly Bill 531) to develop and expand an array of community behavioral health treatment and residential facilities through a competitive grant program administered by the Department of Health Care Services (DHCS) with up to $4.4 billion dollars available statewide known as the Behavioral Health Continuum Infrastructure Program (BHCIP). On November 12, 2024, the Board of Supervisors approved the Behavioral Health Services Division’s request to apply for several projects including the Sheman Recovery Center project. In response to the County’s application, the County has been awarded up to $16,584,692 in grant funds for the construction of the Sherman Recovery Center, a sixteen (16)-bed residential facility designated as a Social Rehabilitation Facility for the County. The services to be provided at the recovery center include twenty-four (24)-hour support and intensive therapeutic services for adults struggling with mental health disorders, substance use issues, or co-occurring conditions.
To receive the grant funds, the County is required to enter into Project Funding Agreement #78-105 (Agreement) with Advocates for Human Potential, Inc. (AHP), which is the grant administrator for DHCS for the Agreement. Under the terms of the Agreement, the County:
• Must develop construction plans and specifications, approved by AHP, and provide proof of a construction contract with a General Contractor.
• Is responsible for any cost overages and must return any excess funds upon construction completion.
• Must maintain an ongoing updated project budget.
• Must allow a Regulatory Agreement and Declaration of Restrictions to be recorded against the portion of the County-owned property that will be the site of the recovery center, restricting the use of the site for 30 years.
• Must provide a Phase I environmental study.
• Must indemnify both AHP and DHCS.
Approval of the Agreement will allow the County to receive funds for the construction of the Sherman Recovery Center. The term of the Project Funding Agreement begins upon execution of the Agreement and continues through June 30, 2030, by which time the project funds must be expended, and the recovery center must be open and operational. This Agreement includes an indemnification provision requiring the County to indemnify, defend and hold harmless AHP and the State for any claims arising out of County’s performance under the Agreement, and for any claims and/or liabilities arising out the County’s failure to maintain the contractually required insurance policies, including Builder’s Risk Insurance.
CONSEQUENCE OF NEGATIVE ACTION:
If this Grant Agreement is not approved the County will not receive this funding to support the development and construction of the Sherman Recovery Center.